Some industrials a haven in the storm

Despite a volatile week for sharemarkets, some fund managers are taking a view that select domestic industrials are still attractive investments.

BT Investment Management increased its holdings in
DuluxGroup
and
Fleetwood
Corporation. Senior portfolio manager Noel Webster said the stocks represented good places to have money invested in the relative volatility of the current market.

“Dulux is the leading brand in the paint market. It has a strong balance sheet, which gives it options for growth, and continues to be well stocked," he said. “It’s almost a ‘must-have’ brand in Bunnings or the new Woolworths venture or any independents, so it’s well placed in that respect."

Mr Webster likes Fleetwood for its “oligarchy-style assets" in Karatha, which includes the Searipple Village.

“They also have a strong balance sheet and are paying a good dividend yield, which is nice from a company with strong mining-related exposure because it means you get paid well along the way. And their caravan business is doing well, too", Mr Webster said.

Earlier this month, BT increased its holding in
Oakton
, which received $15 million from Tenix last week in settlement of a contract dispute. UBS, acting as prime broker for hedge funds, sold out of its 5.22 per cent holding acquired in early March.

BT, as well as AMP, boosted its stake in utility distributor DUET Group.

In a week dominated by the federal government’s carbon tax, some mining and energy names found favour with investors.

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Company Profile

Melbourne investment house L1 Capital boosted its holding in Mongolia-focused miner
Hunnu Coal
. The fund now owns almost 8.3 per cent of the company, which doubled its Joint Ore Reserves Committee-compliant resource estimate for its Unst Khudag project in early July. Total coal resources for the company now exceed 760 million tonnes.

DFA Group raised its stake in Beach Energy.

Perth-based oil and gas explorer
Rialto Energy
has seen mixed movement over the week with Commonwealth Bank increasing its holding to just under 10 per cent, while Fidelity Investments sold down its substantial holding.

Fidelity held 6.93 per cent in late June but has been selling down its stake since then.

US investment house Frankin Resources reported it had increased its holding in Boral to 8.12 per cent. Also in housing, National Australia Bank exited its substantial holding in CSR.

New Zealand billionaire Richard Chandler’s Orchid Fund made a significant investment in Energy World Corporation. The company designs, builds and operates renewable and non-renewable power stations. Earlier this week, the EWC issued 173 million new shares , at 50¢ a share, with Orchid Fund acquiring 14.9 per cent.